How much will it help Ponzi victims?
When Sir Allen Stanford bilked investors out of millions of dollars in the largest known Ponzi scheme this side of Bernie Madoff, the world was outraged that such a wealthy man felt it necessary to tap into the public trust to get his hands on it. in more money. Now that it’s in the hands of the law, AMC Liquidators is going to sell some of Stanford’s assets to repair the millions of dollars lost. I think victims may also need low interest loans and instant cash, but maybe it’s just me.
Tamara Lush reports for The Huffington Post that AMC Liquidators is holding an auction in Fort Lauderdale, Florida. The furniture and other items for sale will come from the Miami offices of the disgraced businessman.
A Boca Raton restaurateur bought a maroon leather chair, cherrywood desk and matching sideboard for $1,500. A steal for the quality of the furniture, no doubt, pennies and pennies compared to what Stanford made investors out of it.
Where is the rest of the $2 billion?
“Value in volume” is the motto that AMC Liquidators brings to their auctions, and the same should be true when they try to pawn Stanford office assets on the open market. At least 25 truckloads of luxury office supplies are for sale, including oriental rugs, marble tables and leather capes. Bronze eagles (the symbol of Stanford Financial Group) are also on the block, as are photos of Stanford-sponsored Palm Beach County polo fields. Oh yes, there is also a tapestry of Louis XIV of France, the “sun king”. No delusions of grandeur on Sir Allen’s part, right?
Estimates put the total value of the Fort Lauderdale sale at around $2 million. However, that is just the tip of the iceberg. According to Forbes, Stanford was worth $2 billion in 2008.
Trying to hit the setup man
In February 2009, Stanford was accused of “promising customers unrealistic returns on $8 billion in certificates of deposit” and other vehicles for financial fraud through an offshore bank in Antigua, Lush writes. The following month, a federal judge ruled that at least $226.6 million in “back taxes, penalties and interest” were fair game for the government. However, Stanford continues to deny the allegations and has not even been charged with a crime. Chief investment officer Laura Pendergest-Holt has been the scapegoat so far. She claims through her attorney that Stanford had “misled” her.
Meanwhile, Stanford and his attorneys are “concerned” about the liquidation being carried out by AMC Liquidators, claiming that it is “an integral part of an overly-hasty effort to liquidate a viable business that generates viable income.” Just until they find something that sticks, Teflon man.
But they will liquidate
A federal judge in Dallas has ordered it and AMC Liquidators is pleased to do so. Michael Grimme, owner of AMC, has pointed out that the business has increased in recent years due to the number of bankruptcies and downsizing. The courts asked AMC to go big with all five Stanford offices in Florida, but it only won the bid for the Miami office. According to Grimme, this is in part because “the owners of the other four offices decided to keep the furniture instead of the back rent. The owner of the property in Miami decided to sell the contents.”
“A lot of my friends were targeted in the Madoff scheme, and I also lost a lot of money in my accounts,” he said. “We were very aware of who we were buying this inventory from. You could say that maybe it’s time for recovery.”
Pay them back. Give them low-interest loans for instant cash, even. Just make sure justice is served.